As shown in the chart below, front-month gold futures are testing their 200-day moving average today. The 200-DMA is a widely-watched technical level, and earlier this year a move above that level for gold was a signal for the strong gains posted in February. After that rally, gold tested $1200 in late May before rocketing higher once again in the wake of the Brexit vote. But over the last three days the yellow metal has broken down significantly. Since Monday’s close, gold is off 4.3% and the 200-DMA is now in play. Below that, it’s another 4.5% decline to the pivot zone around $1200 that has served as a big signal over the past year. For bulls, there’s hope the 200-DMA holds. For the bears, a move below that level ($1255) will target another $55 decline.